Federal Bank and Tata AIA Life Insurance Announce Strategic Bancassurance Partnership

May 31, 2024: In a significant development, Federal Bank, a prominent private sector bank in India, has announced a strategic Bancassurance tie-up with Tata AIA Life Insurance Co Ltd, one of the country’s leading life insurance companies. This partnership aims to provide Federal Bank’s customers access to Tata AIA Life’s comprehensive insurance product suite, thereby enhancing financial security and wealth management opportunities.

The collaboration is set to leverage Federal Bank’s extensive network of 1504 banking outlets and 2013 ATMs/Recyclers across the country. This expansive reach will enable Tata AIA to further strengthen its footprint and deliver diverse life insurance solutions to a broader customer base. Both entities are committed to a technology-enabled, consumer-centric business model, adding to the synergies of this partnership.

Shalini Warrier, Executive Director of Federal Bank, expressed her enthusiasm for the partnership, stating, “We are pleased to announce a strategic Corporate Agency Bancassurance partnership with Tata AIA Life Insurance Company. This partnership aims to bring the best of insurance products to our valued customers. It is a well-known fact that the penetration of insurance amongst Indian consumers is low, and through this partnership, the Bank aims to enhance financial security and wealth management for our customers. The coming together of these two revered brands reflects our commitment to always exceeding customer expectations.”

Federal Bank customers will benefit from Tata AIA’s diverse, consumer-centric life insurance solutions, including term insurance, savings and wealth creation plans, retirement, and pension solutions. Among these offerings is the innovative Param Rakshak plan, which provides triple benefits of high life cover, market-linked returns, and health & wellness benefits. These solutions are backed by Tata AIA’s empathy-led, tech-enabled service experience, powered by best-in-class technology.

Ramesh Viswanathan, Chief Distribution Officer- Bancassurance at Tata AIA Life Insurance, commented, “At Tata AIA, our endeavour is to partner our consumers, giving them access to best-in-class life insurance solutions, backed by empathy-led service experience, to enable them to live a ‘fikar-free’ life. We are delighted to enter a long-term relationship with a reputed and technology-savvy bank like Federal Bank. This association will enable us to offer our diverse insurance solutions to the bank’s customers, empowering them to fulfil their aspirations and secure their loved ones across all stages of life.”

Federal Bank’s total business mix (deposits + advances) stood at ₹4.62 Lakh Crore as of March 31, 2024. The Bank maintains a Capital Adequacy Ratio (CRAR) of 16.13% as per Basel III guidelines and has representative offices in Dubai and Abu Dhabi, serving Non-Resident Indian customers in the UAE. It also operates an IFSC Banking Unit in Gujarat International Finance Tec-City (GIFT City).

Tata AIA Life Insurance Company Limited, a joint venture between Tata Sons Pvt. Ltd. and AIA Group Ltd., combines Tata’s leadership in India with AIA’s extensive presence across 18 markets in the Asia Pacific region. Tata AIA reported an Individual Weighted New Business Premium income of INR 7,092 Crore in FY23, marking a 59% increase over the previous year. The company’s Individual Death Claims Settlement ratio improved to 99.01%, and its 13th Month Persistency ratio (based on Premium) rose to 88.1%, reflecting high customer satisfaction and policy renewals.

The Tata Group, founded by Jamsetji Tata in 1868, is a global enterprise comprising 30 companies across ten verticals, operating in more than 100 countries. AIA Group Limited, established in 1919, is the largest independent publicly listed pan-Asian life insurance group with a presence in 18 markets.

This strategic alliance between Federal Bank and Tata AIA Life Insurance is poised to offer unparalleled insurance solutions, further empowering customers with robust financial security and comprehensive life coverage options.